Money, banking and finance are the nerve-centre of an economy. They cover the whole gamut of legal and institutional arrangements, financial intermediaries, financial markets and instruments with both domestic and external dimensions. The present book explains and examines at length the changes which have swept India`s monetary, banking and financial sectors since Independence in 1947, with focus on post-1991 period.

    The book is organized into 8 parts. Part I deals with money, monetary policy, globalization and changing functions of central banks worldwide. It also focuses on Reserve Bank of India (RBI) and its monetary and credit policies, particularly in the context of price stability and flow of credit to priority sectors of the economy. Monetary policy reforms in India since 1991 are also covered in this part of the book. Part II traces the evolution and the present status of various financial intermediaries in India. The areas covered include: commercial banks, co-operative banks, development finance institutions (DFIs), non-banking financial companies (NBFCs) and mutual funds. Part III begins with the role of financial system in economic development. It traces the evolution of India`s financial system since Independence, explains its present structure and provides glimpses of its future development. Furthermore, it gives an account of the various components of financial markets in India (money market, Government securities market, capital market, insurance market and foreign exchange market) and explains recent measures to make them globally competitive. Part IV of the book focuses on global meltdown and its impact on India. Policy measures taken by the Government of India, Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) are also highlighted. Part V contains 8 Appendices. Appendix 1 summarises Monetary Policy Statement of the RBI for the Year 2009-10. Appendix 2 summarises Developmental and Regulatory Policies of the RBI for the Year 2009-10. Appendix 3 records policy measures by the RBI from September 2008 to March 2009 to mitigate the adverse impact of global economic crisis on the Indian Economy. Appendices 4 to 8 provide relevant information on the subject. Part VI provides annual review of money and prices in India from 1947-48 to 2008-09. Part VII provides annual review of banking and financial developments in India from 1947-48 to 2008-09. Part VIII contains glossary of money, banking and financial terms.

    The book is designed to interest a cross-section of readers, viz. teachers and students of economics, commerce, law, public administration, business management, chartered accountancy and company secretaryship. It will also serve the needs of legislators, business executives, entrepreneurs and investors, and others interested in monetary, banking and financial developments in India.

1. Money and Monetary Policy - Forms of Money; Functions of Money; Monetary Management by Central Banks; Monetary Policy Objectives; Monetary Policy versus Fiscal Policy; Globalisation and Monetary Policy.

2. Reserve Bank of India and Monetary Management - Establishment and Early History of RBI; Pre-Independence Activities of RBI; Functions of RBI; Post-Independence Review of the Role and Responsibilities of RBI; Post-1991 Reforms and Responsibilities of RBI; Measures of Money Supply in India; Electronic Money (E-money) in India; Monetary Transmission Mechanism; Monetary Policy-Fiscal Policy Interface in India; Conclusion.

3. Monetary Policy and Prices - Relationship between Money and Prices; Definition and Measurement of Price Rise; Need to Monitor and Moderate Price Rise; Causes of Price Rise; Effects of Price Rise; Determinants of Price Policy; Constituents of Price Policy; Role of Buffer Stock Operations; History of Price Controls in India; Price Stability as an Objective of Monetary Policy in India; Price Policy of the Government; Fiscal Deficits, Monetary Expansion and Price Rise; Conclusion.

4. Monetary Policy Reforms Since 1991 - Economic Reforms and Monetary Management; Constituents of Monetary Reforms; RBI`s Internal Group on Liquidity Adjustment Facility (LAF); Changing Monetary Policy Paradigm in India; Recent Challenges; Operating Procedures of Monetary Policy; External Sector Openness and Conduct of Monetary Policy; Monetary Policy Assessment.

5. Credit Policy -Significance of Credit Policy; Credit Policy in India; Flow of Credit to Agricultural Sector; NABARD and the Co-operative Sector; Agriculture Credit in the 2006-07 Union Budget.

6. Commercial Banks -Meaning and Role of Commercial Banks; Functions of a Commercial Bank; Balance Sheet of a Commercial Bank; Classification of Commercial Banks in India; Pre-Independence History of Commercial Banks in India; Post-Independence Developments in Commercial Banking; Banking Sector Reforms since 1991; Credit Flow from the Banking System: Sector-wise Review; Regulation and Supervision of Commercial Banks; Recent Initiatives Concerning Commercial Banks; Indian Banking and Modern Technology; Current Issues in Indian Banking; Summing up.

7. Co-operative Banks - Introduction; Classification of Co-operative Banks; Urban Co-operative Banks (UCBs): Recent Policy Initiatives; Rural Cooperatives: History and Recent Policy Measures; Primary Agricultural Credit Societies (PACS); Micro Credit Programme; Kisan Credit Cards; NABARD and the Co-operative Sector; Summing up.

8. Development Finance Institutions (DFIs) - Introduction; All-India Financial Institutions (AIFIs); State Level Institutions; Working Group for Harmonising the Role and Operations of Development Finance Institutions (DFIs) and Banks (Chairman: S.H. Khan), 1998; Development Finance Institutions (DFIs): The Changed Scenario; Regulation and Supervision of Financial Institutions; Recent Policy Initiatives Regarding DFIs; Conclusion.

9. Non-banking Financial Companies (NBFCs) - Meaning and Importance of NBFCs; Regulation and Supervision of NBFCs); NBFCs in Insurance Business; Policy Initiatives Regarding NBFCs in Recent Years; Conclusion.

10. Mutual Funds -Introduction; Bifurcation of UTI; Role of Mutual Funds in the Stock Market.

11. Financial System and Economic Development - Meaning and Importance of Financial System; Emerging Financial Paradigm.

12. Financial System of India: An Overview - Pre-Independence Financial System; Post-Independence Developments; Reserve Bank of India (RBI): New Role; Recent Initiatives to Strengthen Financial System; Future of India`s Financial Sector; Conclusion.

13. Money Market -Meaning and Functions of Money Market; Reserve Bank of India (RBI) and the Money Market; Evolution of Money Market in India; Developments in the Money Market since 1991; Components-wise Analysis of Money Market in India; Report of the Technical Group on Money Market; Areas of Concern; Conclusion.

14. Government Securities Market - Introduction; Evolution of Government Securities Market; Post-1991 Measures to Promote Government Securities Market; Challenges for the Future; Conclusion.

15. Capital Market -Meaning and Importance; Capital Market in the Pre-reforms (i.e. Pre-1991) Period; Reforms in the Capital Market since 1991; Portfolio Investment Flows: Global and Indian Experiences; Capital Market in the 2007-08 Union Budget; Conclusion.

17. Foreign Exchange Market - Introduction; Evolution of Foreign Exchange Regulation/Management in India; Foreign Exchange Policy Initiatives since 1991; Conclusion.

18. Capitalism and Business Cycles: History and Views - Views of Classical Economists; The Great Depression; Keynesian Economics; Modes of State Intervention; Contagious Nature of Business Cycles.

19. India`s Response to Global Meltdown - Period Preceding the Present Crisis; Genesis of the Present Crisis; Damage Control Measures; Contagious Nature of Crisis and the Rejection of De-coupling Theory; Intensity of the Crisis; Impact of Present Crisis on India; Government`s Policy to Deal with the Crisis; Remedial Measures Taken by the Government; Remedial Measures Taken by the Reserve Bank of India (RBI); Measures Taken by Securities and Exchange Board of India (SEBI); Outlook for India